BNY Mellon Corporation (BNY.N) 2Q26 Review - Strong Quarter Moves Estimates Higher With Mgmt Executing at Med-Term Returns; Raise PT to $172

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BNY Mellon Corporation (BNY.N) 2Q26 Review - Strong Quarter Moves Estimates Higher With Mgmt Executing at Med-Term Returns; Raise PT to $172

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20 Jul 2026 05:00:00 ET │ 15 pages

BNY Mellon Corporation (BNY.N)

2Q26 Review - Strong Quarter Moves Estimates Higher With Mgmt

Executing at Med-Term Returns; Raise PT to $172

CITI'S TAKE Neutral

Price (17 Jul 26 16:00) US$157.13 BNY outperformed on earnings day (up ~5.1% vs BKX up ~1.5%), due to

Target price US$172.00↑ likely upward revisions of '26 numbers (our estimates move ~3% higher),

largely driven by better NII (guide for +12-13%) and fee growth with total from US$167.00

revenue guidance raised to 10-11% y/y (vs. cons prev at ~8.4% y/y growth). Expected share price return 9.5%

Bottom-line also better as mgmt now expects ~400bps of positive oplev Expected dividend yield 1.6%

for the full-year. BNY and peers continue to benefit from favorable market Expected total return 11.1%

tailwinds and notable public sector mandate win in 2Q highlights depth of Market Cap US$106,613M

BNY's capabilities plus adds to the durability of Issuer Services. We

continue to see strong execution against both near- and med-term

targets and we raise our PT to $172 on higher normalized ROTCE

assumption of 29%. We remain on the sidelines with no upside to med- Benjamin GerlingerAC

term estimates and believe stock already reflects returns at/above mgmt's +1-212-816-3538

med-term return targets. benjamin.gerlinger@citi.com

Mikhail Mrotchek

Estimate Changes — Our 2026E EPS increases 25c to $9.30 (vs. FactSet +1-212-816-2345

consensus of $9.13), 2027E EPS increases 15c to $9.85 (vs. FactSet consensus of misha.mrotchek@citi.com

$10.11), and 2028E EPS decreases 10c to $10.50. See Figure 1 for more detail on

Kaili Wang, CFAestimate revisions.